PageGroup plc (LSE:PAGE) reported full-year 2025 results on Thursday broadly in line with its previous guidance, though earnings per share came in below analyst expectations as a higher effective tax rate weighed on the outcome amid ongoing uncertainty in recruitment markets.
For the year ended 31 December 2025, the company generated gross profit of £769.5m, representing a 7.6% decline in constant currency compared with £842.6m recorded in 2024. Revenue also fell 7.4% year over year to £1,596.6m.
Operating profit dropped sharply to £20.9m, down 58.8% from the previous year and in line with earlier guidance. This equated to a conversion rate of 2.7%, compared with 6.2% in 2024. The results included roughly £15m in one-off restructuring costs, partly offset by £5m in savings.
Basic earnings per share decreased 68.1% to 2.9p from 9.1p the previous year, landing around 21% below market consensus. The shortfall was mainly attributed to a higher effective tax rate of 44.4%, compared with 42.1% in 2024.
The board proposed a final dividend of 3.21p per share, significantly lower than the 11.75p distributed the year before. This brings the total dividend for the year to 8.57p per share, marking a 50% reduction from 2024.
“The Group produced a resilient performance despite continued market uncertainty,” said Nicholas Kirk. “We saw variable market conditions across the regions, with ongoing challenging conditions in Continental Europe and the UK. However, we continued to grow in the US, and we saw improved conditions in Asia Pacific, particularly during the second half of the year.”
The number of fee earners employed by the group declined by 402 during the year, a reduction of 7.5%, leaving a total of 4,968. Despite the lower headcount, gross profit per fee earner remained strong at £148.9k, up 0.3% in constant currency.
PageGroup said its cost optimisation programme remains on course to deliver annualised savings of about £15m starting in 2026.
At the end of the year, the company reported net cash of £31.4m, down from £95.3m a year earlier, reflecting dividend payments totalling £53.6m during 2025.
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